Overview & Approach

Part 1

DMIC Summit – Developing Hub for Investors

DMIC Overview

Delhi-Mumbai Industrial Corridor, from here on referred to as DMIC, is a multi-modal High Axle Load dedicated freight corridor connecting Delhi and Mumbai. It is a mega infrastructure project at USD 100 billion with technical and financial aid built in from Japan. The project is a flagship programme of Government of India with the aim of creating futuristic Industrial Cities by leveraging the "High Speed - High Capacity" connectivity backbone provided by Western Dedicated Freight Corridor (DFC).

DMIC Overview

The government has proposed to promote DMIC along the alignment of DFC between Delhi and Mumbai. The envisaged alignment of freight corridor passes through multiples states including Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra and is mostly aligned parallel to the existing railway tracks. 1504kms, of freight corridor will be covered to create industrial hub, with end terminals at Tughlakabad and Dadri on one end and Jawaharlal Nehru Port at Mumbai on the other.

Genesis

NBFCs, unlike banks, are not required to comply with the PSL guidelines. However their participation in the MSME sector is driven to a large extent by unmet finance demand of these enterprises, and the ability of NBFCs to develop innovative financial products and deliver finance in a cost – effective manner, with greater flexibility and quicker turnaround times. In order to encourage banks to increase their direct lending to the MSME sector, an RBI regulation in April 2011 excluded loans sanctioned by banks to NBFCs for on-lending to micro and small enterprises from priority sector targets. However, the Nair Committee Report has recommended that commercial bank loans to NBFCs for on-lending to specified segments may be considered for classification under priority sector, up to a maximum of 5 percent of ANBC, subject to certain due diligence and documentation standards.

Vision & Objectives

The vision for DMIC is to develop it as a “global manufacturing and trading hub”. It looks at creating a strong economic base with globally competitive environment and infrastructure. It is to be conceived as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base. In addition to new Industrial Cities, the programme envisages development of infrastructure linkages like power plants, assured water supply, high capacity transportation and logistics facilities as well as softer interventions like skill development programme for employment of the local populace. This will drive commerce, enhance foreign investments and attain sustainable development.

Vision & Objectives

Stable regulations, well-developed communications, efficient transportation systems and the pro-business environment are some of the essential requirements to be fulfilled to accomplish the huge potential for growth and development. At a very basic level, to point towards the impact this project is capable of having, consider the time taken to transport goods from North India to Western Coast. Currently goods produced in the northern part of India take about 14 days to reach the ports on the western coast of India. Post the corridor, the movement will take between only about 13 and 14 hours. This will have impact across the supply chain for any product or industry.

Vision & Objectives

Specifically, the project aims to deliver definite end results ensuring realization of envisaged vision for the project. Accordingly the project goals for DMIC are:• Triple industrial output in 9 years• Quadruple exports from the region in 8-9 years

Characteristics

The project acknowledges and provides for effective integration between industry and infrastructure leading to overall economic and social development. The corridors constitute world class infrastructure such as high-speed transportation (rail, road) network, ports with state-of- the-art cargo handling equipment, modern airports, special economic regions/ industrial areas, logistic parks/trans-shipment hubs, knowledge parks etc. along with enabling policy framework. Corridor approach for industrial development primarily takes advantage of the existence of proven, inherent and underutilized economic development potential within the influence region.

Characteristics

This also has long term advantages with respect to smoother backward and forward access, decreased freight and communication costs, improved delivery time and inventory handling. In all, aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors.

Characteristics

Given the above context, the delivery can be seen under two broad heads of a. Quality industrial investments and world class infrastructure facilities a. Industrial Infrastructure : This entails providing for: a. Up gradation of existing industrial clusters/ estates; b. Developing new industrial clusters or townships and export oriented

manufacturing zones; c. Development of ‘Skill Development Centers (or) Knowledge Hubs’ d. Developing agro-processing hubs with cold storage, packaging and

distribution and other allied infrastructure; e. Developing IT/ ITES Hubs/ other service oriented facilities.

Characteristics

b. Physical and Social Infrastructure a. Efficient logistics chain with multi-modal trans-shipment zones and

logistic hubs; b. Provision of Feeder Road and Rail connectivity to ports, hinterlands and

markets; c. Augmentation of existing port infrastructure and developing Greenfield

ports; d. Up gradation/ Modernization of Airports; e. Captive Power Generation Plants with power transmission facilities; f. Environment and Human Sustainabilityg. Dovetailed social infrastructure to ensure attractive investment climate.

Coverage

A band of 150 km to 200 km has been chosen on both the sides of the Freight corridor to be developed as the Delhi-Mumbai Industrial Corridor. In addition to the influence region, DMIC would also include development of requisite feeder rail/road connectivity to hinterland/markets and select ports along the western coast.

Integrated Development Approach – Concept of Nodes

The corridor passes through multiple states and cities, each at a different level of industrial development, natural endowment, human talent etc. The project acknowledges and proposes to address this bottleneck through a holistic approach while benefiting from the inherent strengths and competitiveness of each of the DMIC states.Given the above, high impact/ market driven nodes identified across the corridor under which integrated Investment Region (IRs) and Industrial Areas (IAs) would be set up.

Integrated Development Approach – Concept of Nodes

These regions are proposed to be self-sustained industrial townships with world-class infrastructure and connectivity, reliable power and other quality social infrastructure, and provide a globally competitive environment conducive for setting up businesses. An Investment Region (IR) would be a specifically delineated industrial region with a minimum area of over 200 square kilometers (20,000 hectares), while an Industrial Area (IA) would be developed with a minimum area of over 100 square kilometers (10,000 hectares). 24 such special investment nodes - 11 IRs and 13 IAs spanning across six states have been identified, based on pre-specified criteria.

Integrated Development Approach – Concept of Nodes

Investment Regions: • Ahmedabad – Dholera Special Investment Region, Gujarat (903 sq. kms.)• Dadri-Noida-Ghaziabad Investment Region,Uttar Pradesh, (218 sq. kms.).• Manesar-Bawal Investment Region,Haryana (402 sq. kms.);• Khushkhera-Bhiwadi-Neemrana Investment Region,Rajasthan (160 sq. kms.); • Pitampur-Dhar-Mhow Investment Region,Madhya Pradesh (372 sq. kms.)Industrial Areas: • Shendra-Bidkin Industrial Area, Maharashtra (84 sq. kms.) • DighiPort Industrial Area, Maharashtra (253 sq. kms.)• Jodhpur-Pali-Marwar Industrial Area, Rajasthan (155 sq. kms.)

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